Australian inflation rate in 1986: 9.18%

Australia Inflation Calculator


Australian Inflation Rate, 1986-2018 (AU$1)

The consumer price index (CPI) in 1986 was 42.8. the Bureau of Statistics uses this CPI value to track inflation on a monthly basis.

According to the Bureau of Statistics consumer price index, the dollar experienced an average inflation rate of 3.03% per year. Prices in 2018 are 160.2% higher than prices in 1986.

In other words, AU$1 in the year 1986 is equivalent in purchasing power to AU$2.60 in 2018, a difference of AU$1.60 over 32 years.

The current inflation rate in 2018 is 1.80%1. If this number holds, AU$1 today will be equivalent to AU$1.02 next year.

Inflation from 1986 to 2018
Cumulative price change 160.21%
Average inflation rate 3.03%
Price difference (AU$1 base) AU$1.60
CPI in 1986 42.8
CPI in 2018 111.3692

AUD inflation chart from 1922 to 2017

How to calculate the inflation rate for AU$1 since 1986

Start with the inflation rate formula:

CPI in 2018 / CPI in 1986 * 1986 AUD value = 2018 AUD value

Then plug in historical CPI values. The Australian CPI was 42.8 in the year 1986 and 111.3692 in 2018:

111.3692 / 42.8 * AU$1 = AU$2.60

AU$1 in 1986 has the same "purchasing power" as AU$2.60 in 2018.

News headlines from 1986

Politics and news often influence economic performance. Here's what was happening at the time:

  • Ferdinand Marcos becomes president of the Philippines after rigged elections.
  • 6.5 million People hold hands across the US in an event referred to as Hands Across America.
  • Doctors announce that the drug AZT will be available to AIDS patients.
  • Talks between Ronald Reagan and Mikhail Gorbachev begin at the Reykjavik summit.
  • Mrs. Davina Thompson receives the first heart, lung and liver transplant in Cambridge, England.

Inflation Data Source

Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).

You may use the following MLA citation for this page: “Inflation Rate in 1986 | Australia Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 17 Apr. 2018,

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